Question No 16:
Based on the data below, what is the amount of the overhead under-/over-absorbed?
Budgeted overheads $493,200
Budgeted machine hours 10,960
Actual machine hours 10,493
Actual overheads $514,157
A. $20,957 under-absorbed
B. $21,015 over-absorbed
C. $21,015 under-absorbed
D. $41,972 under-absorbed
Answer: D
Wednesday, 22 July 2015
Sunday, 12 July 2015
Cima C01 Exam Question No 15
Question No 15:
Fixed costs are conventionally deemed to be:
A. Constant per unit of output
B. Constant in total when production volume changes
C. Outside the control of management
D. Those unaffected by inflation
Answer: B
Fixed costs are conventionally deemed to be:
A. Constant per unit of output
B. Constant in total when production volume changes
C. Outside the control of management
D. Those unaffected by inflation
Answer: B
Sunday, 5 July 2015
Cima C01 Exam Question No 14
Question No 14:
Which ONE of the following statements is true?
A. The total variable cost varies with a measure of activity.
B. A variable cost is an unavoidable cost.
C. A variable cost is not relevant for decision-making.
D. A variable cost becomes fixed in the long run.
Answer: A
Which ONE of the following statements is true?
A. The total variable cost varies with a measure of activity.
B. A variable cost is an unavoidable cost.
C. A variable cost is not relevant for decision-making.
D. A variable cost becomes fixed in the long run.
Answer: A
Sunday, 28 June 2015
Cima C01 Exam Question No 13
Question No 13
A hospital’s records show that the cost of carrying out health checks in the last five accounting periods have been as follows:
Period Number of patients seen Total cost ($)
1 650 17,125
2 940 17,800
3 1260 18,650
4 990 17,980
5 1150 18,360
Using the high-low method and ignoring inflation, the estimated cost of carrying out health checks on 850 patients in period 6 is:
A. $17,515
B. $17,570
C. $17,625
D. $17,680
Answer: C
A hospital’s records show that the cost of carrying out health checks in the last five accounting periods have been as follows:
Period Number of patients seen Total cost ($)
1 650 17,125
2 940 17,800
3 1260 18,650
4 990 17,980
5 1150 18,360
Using the high-low method and ignoring inflation, the estimated cost of carrying out health checks on 850 patients in period 6 is:
A. $17,515
B. $17,570
C. $17,625
D. $17,680
Answer: C
Sunday, 21 June 2015
Cima C01 Exam Question No 12
Question No 12:
The diagram represents the behavior of a cost item as the level of output changes.
Which ONE of the following situations is described by the graph?
A. Discounts are received on additional purchases of material when certain quantities are purchased.
B. Employees are paid a guaranteed weekly wage, together with bonuses for higher levels of production.
C. A license is purchased from the government which allows unlimited production.
D. Additional space is rented to cope with the need to increase production.
Answer: A
The diagram represents the behavior of a cost item as the level of output changes.
Which ONE of the following situations is described by the graph?
A. Discounts are received on additional purchases of material when certain quantities are purchased.
B. Employees are paid a guaranteed weekly wage, together with bonuses for higher levels of production.
C. A license is purchased from the government which allows unlimited production.
D. Additional space is rented to cope with the need to increase production.
Answer: A
Sunday, 14 June 2015
Cima C01 Exam Question No 11
Question No 11:
An engineering firm operates a job costing system. Production overhead is absorbed at the rate of $8.50 per machine hour. In order to allow for non-production overhead costs and profit, a mark up of 60% of prime cost is added to the production cost when preparing price estimates.
The estimated requirements of job number 808 are as follows:
Direct materials $10,650
Direct labor $3,260
Machine hours 140
The estimated price notified to the customer for job number 808 will be
A. $22,256
B. $22,851
C. $23,446
D. $24,160
Answer: C
An engineering firm operates a job costing system. Production overhead is absorbed at the rate of $8.50 per machine hour. In order to allow for non-production overhead costs and profit, a mark up of 60% of prime cost is added to the production cost when preparing price estimates.
The estimated requirements of job number 808 are as follows:
Direct materials $10,650
Direct labor $3,260
Machine hours 140
The estimated price notified to the customer for job number 808 will be
A. $22,256
B. $22,851
C. $23,446
D. $24,160
Answer: C
Monday, 8 June 2015
Cima C01 Exam Question No 10
Question No 10:
Which ONE of the following costs would NOT be classified as a production overhead cost in a food processing company?
A. The cost of renting the factory building
B. The salary of the factory manager
C. The depreciation of equipment located in the materials store
D. The cost of ingredients
Answer: D
Which ONE of the following costs would NOT be classified as a production overhead cost in a food processing company?
A. The cost of renting the factory building
B. The salary of the factory manager
C. The depreciation of equipment located in the materials store
D. The cost of ingredients
Answer: D
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